"We need a growing, open economy so we can fund the increases in defence spending that the government's committed to, but this can't be a zero sum trade-off between economics and security," he said.
Since Russia's invasion of Ukraine, which it has called a "special operation", Australian intelligence professionals considered that "a major power conflict unfortunately is becoming a less remote prospect than it was previously", Shearer said.
He echoed many Western commentators by saying he was surprised by the effectiveness of Ukraine's resistance to Russian forces. But he foreshadowed a "brutal, bloody couple of weeks" since Russian leader Vladimir Putin had "everything at stake now (and) it's hard to see an elegant, or inelegant, dismount".